Don’t wait until the last minute to prepare your taxes. There’s plenty of time left until the deadline. These easy-to-follow steps can give you a headstart.
Gather all important documents
The W-2 wage information of employees is usually sent out by the end January. During the same month, investment firms also disperse the 1099s of stock or bond sales. Most of the information found on these documents are from the last year, so as soon as you have the copies, check them closely. If you find errors on the numbers, or they don’t match your earnings, then contact anyone who’s in-charge so you can ask for corrections and receive the corrected document in time.
Aside from W-2s and 1099s, you should also collect work-related receipts that weren’t reimbursed by employers. These items are deductible especially for those who are self-employed. If you’re unsure which purchases can be deducted, you can ask a tax professional or look up credible tax sources online.
Review last year’s copy
Take the time and review your previous tax return before filing for this year. Details, such as your tax loss carry forward information, withholding information, and traditional income, are valuable data that can be used. In addition, filing will be a lot easier when your accountant knows how certain income has been treated.
Update social security information
If in the past year you had a child or adopted one, then you must provide your tax accountant with the kid’s social security number. When this detail is updated in your information, you are eligible for a tax credit for each dependent child you support.
An early and thorough preparation of taxes will keep you from serious headaches come deadline. Start gathering all those important documents, meet with your accountant, and check back on these tips, so you can finish filing your taxes hassle-free.